USDCHF: Consolidation is over - Middle termWe can spot, that the Double Top pattern has confirmed. The second TOP candle is bearish pin-bar, which is signalizing the reversal on the market. It pushed the USD/CHF lower. We could see the market consolidation, which lasted more then 4 months (0.98-1.006).
The neckline was set at the value 0.98, which had to be broken to make the formation valid. A few days ago, it happened. Now the price a little bounced from 0.965 with candle, which looks like a bullish pin bar. It just seems like bullish pin bar (maybe market consider it, but it is not good pin-bar).
Today were published the (YoY) results from Inflation 1.2 percent as expected and also (MoM-August) Inflation, where we can see a little progress at 0.0 percent versus past monthly values -0.2 percent. This are still low value and the market responded with a growth of USDCHF.
If the market breaks the green resistance (0.971), the market could test the blue resistance. From a short term view, we can see RSI at really low points and MACD is near the crossing up. On Histogram we can see, the bears are getting weaker. So short term view could be bullish. But we should we aware, the market has confirmed a double top formation. We are also under all important EMA (200,100,50), so currently I don't expect a bigger move (over the EMA).
From Middle term I expect breakout the red zone and test lower supports. But from short-term it can be a little bounce to the blue resistance or below the EMA.
This is just my point of view, not investing advice. I'm not responsible for your losses.
